Salary Talk: What should I ask for when going from consultant to full-time?

Salary
Talk

For
someone going from contractor to full-time employee, the difference
in pay depends on how expenses were tracked and on the responsibilities
of the full-time position.

What
should I ask for when going from consultant to full-time?

Q.I
am working as consultant for a company and have been asked to join
as an employee. How does the fee I receive as a consultant relate
to the salary I would get as an employee?

A.The
answer depends on two things: the way you're currently charging
the company; and the role you're being asked to take on as a full-time
employee.

First,
there is the matter of expenses. Consultants typically work off
site and are on company premises principally for meetings. Such
consultants may charge their customers fees that cover overhead
in addition to the fees for the services being performed. Consultants'
fees often include other out-of-pocket costs such as statutory and
nonstatutory benefits they would derive if they worked for a company.

Some
consultants work on the company premises using the company's equipment,
support staff, etc. in much the same way as a temporary employee.
These consultants typically have a different fee structure to acknowledge
their lower overhead costs, although they still incur some expenses
(such as benefits).

When
you go into a full-time role, you are selling the skill sets and
experiences you bring to the job - nothing more, nothing less. Incidental
costs are no longer an issue because the company will absorb them.

The
second issue relates to whether you are moving into a role comparable
to the one you held as a consultant. Sometimes the role the company
wants the consultant to take on is broader in focus, and sometimes
narrower. Consequently, the expectations of the role, and its value,
can differ dramatically.

As
you negotiate with the company - and let's be clear: this is a negotiation
- get them to clarify the role they expect you to fill. Ask for
a job description. You may also want to ask the company whether
there are other comparable roles in the company and whether these
jobs would be considered peer jobs. Ask questions like, will you
have supervisory responsibility? Having an understanding of other
comparable jobs in the company tells you the scope and level of
responsibility you'll be expected to have once you join.

Once
you have determined how your new role will fit into the company,
you are in a much better position to match the job in the Salary
Wizard or drill down to the specific market in which the company
operates and price your specific skills and experience using the
Personal Salary Report.
Armed with such research, you can then prepare for your negotiation.